Penalty under Section 112 could not be sustained because the...

Penalty under Section 112 could not be sustained because the Revenue failed to establish that the Customs Broker's director had knowledge of, or reason to believe in, the alleged undervaluation. The Tribunal noted that the adjudicating authority had merely repeated the show cause notice without independent reasoning, and relied on an earlier finding that the appellant was unaware of the contravention and that the incriminating material pointed to others. Statements used against the appellant had not satisfied Section 138B and therefore lacked evidentiary value, while no incriminating documents were recovered from him or the firm to connect him with the violation. The penalty was set aside and the appeal was allowed with consequential relief.